Pennsylvania budget: What it means to you

View full sizeANN FOSTER, The Patriot-NewsGovernor Edward G. Rendell holds a press conference on the state budget on June 29, 2010.

Pennsylvania Gov. Ed Rendell said the state budget would be painful, and that wasn't a hollow warning. The 2010 budget was approved by the General Assembly and awaits Rendell's signature. There are no broad-based tax increases, but various parts of everyone's life will be touched. Here's what the budget means for education, the arts, veterans and more:

AGRICULTURE

$101.3 million, loss of $4.8 million

The state Agriculture Department budget is $101.3 million, a loss of about $4.8 billion. Crop insurance fell from about $600,000 to $509,000. Agriculture research has been cut to $874,000, a $126,000 reduction. Payments to Pennsylvania fairs fell to $1 million, a 50 percent cut. Agriculture has been a budget loser for four consecutive years, said Mark O’Neill, a Pennsylvania Farm Bureau spokesman. “We are hopeful that when the economy does improve, agriculture will be funded appropriately,” he said.

ARTS

$8.4 million for grants, $2.6 million less than last year

It’s too early to say how arts funding cuts will play out, said Philip Horn, executive director of the Pennsylvania Council on the Arts. Fewer grants might be awarded to arts groups, he said. The council works with about 1,400 organizations, projects and programs every year. “Certainly, we have already seen people cut back on the number of things they do or the length of things they do,” Horn said. “Theaters are being clever. They are doing plays that don’t require royalties or doing fewer plays or concerts. It’s a lot of belt-tightening. We see some organizations that are on the verge that might not survive.”

BUSINESS

No broad tax increases, less for development

The tentative budget has more good than bad in it for midstate businesses. Businesses will not see increases in sales or income taxes to discourage consumer spending. The agreement doesn’t contain a tax on cigars and smokeless tobacco products. The downside: The state Department of Economic Development was cut to $595.2 million, a loss of $82.5 million. With tax rates holding steady, Pennsylvania should be more competitive with other states, said David Black, president and CEO of the Harrisburg Regional Chamber.

CONSERVATION AND NATURAL RESOURCES

$82.4 million, a $10 million cut

Prepare for a possible shortened pool and campground season, a reduction of grass cutting and snow removal across parks and a decrease in environmental education and outdoor recreation programs. Such steps would follow with decisions the Department of Conservation and Natural Resources has made in recent years to adjust to budget cuts, in particular to state parks and forests services. State parks see a cut of 7 percent. Pennsylvania is one of a few states not to charge entrance fees to parks and forests, and the agency has no plans to change policy, department spokeswoman Chris Novak said. “State parks belong to all of us,” she said. Plus, imposing fees means setting up gates at all the parks and some have many entrances.

CORRECTIONS

$1.87 billion, including federal aid; $81.6 million increase

As the state’s prison population grows, so does the Department of Corrections’ budget. Pennsylvania’s prisons have become so overcrowded that the state recently transferred 2,100 inmates to prisons in Michigan and Virginia. The state will begin building four prisons this summer. Gov. Ed Rendell and lawmakers have noted that much of the money spent on corrections is mandated and can’t be cut, a big factor in crafting the budget. Lawmakers have introduced several measures aimed at changing the way Pennsylvania sentences inmates in the hopes of diverting more to community-based centers rather than state prisons.

DEPARTMENT OF ENVIRONMENTAL PROTECTION

$464 million, a $5.7 million cut

Campers, swimmers, golfers and landscapers would be advised to pack insect repellent. The new spending plan calls for cuts in the state’s bug-spraying programs for black flies and mosquitoes, which can carry the West Nile virus. The black fly spray program budget will be cut to $3.4 million from last year’s $5.1 million. This year, the state has funding to spray through July. Next year, it will end in June. Once spraying stops, black flies become noticeable within three to four weeks. The West Nile spraying program will be cut from $5.1 million to $4.38 million. Financial constraints forced the state last year to eliminate grants to 36 counties for mosquito spraying, among them Perry County.

HARRISBURG

$496,000 for fire services, a cut of 50 percent

Harrisburg’s payment for fire services provided to the state Capitol Complex is halved in the state budget, from $1 million in 2009-10 to just $496,000 this year. The financially troubled city is facing a current-year deficit estimated at $7 million already. Mayor Linda Thompson’s administration could not be reached for comment yesterday. But state Rep. Ron Buxton, D-Harrisburg, said Wednesday he will try to steer funds to the city. It is the second straight year Harrisburg has taken a hit in the budget. The fire services payment was $1,253,000 in 2008-09.

HEALTH CARE

Agencies are banking on federal assistance

Most of the money devoted to hospitals and health care is channeled through the Department of Public Welfare, which will receive $25 billion in federal and state money, an increase of $1.8 billion. Other health programs fall under the Department of Health, which received $758 million in federal and state aid, up $28 million. The Hospital and Healthsystem Association of Pennsylvania was satisfied with the level of funding for hospitals. The Pennsylvania Budget and Policy Center, which focuses on programs for the poor and disabled, expressed concern over cuts in programs for the mentally ill and the autistic. If Pennsylvania doesn’t get an anticipated $850 million in Medicaid assistance, big challenges loom.

HIGHER EDUCATION

$1.5 billion, down $17 million

The 14 state universities and other public universities — including Penn State — were spared any cuts. Maintaining state aid is a requirement to receive federal stimulus money for higher education. The state grant program for college students was cut by $15.3 million. Keith New, a spokesman for the Pennsylvania Higher Education Assistance Agency, said the average grant will be about $2,297, down from last year’s average of about $2,748. Awards vary based on a student’s financial need and college costs, but they will go as high as $3,541, which is down from last year’s $4,120 maximum. Students should receive notification in two weeks of their final grant amount, New said.

School districts were the big winners this year, with a $250 million increase in basic education aid. Special education was funded at last year’s level of $1 billion. But accountability block grant funding used to pay for such initiatives as full-day kindergarten or teacher coaches was cut by $12 million. And funding was cut by nearly $2.3 million for two preschool programs. School boards hailed the basic education increase in a budget that includes many cuts, said Tim Allwein of the Pennsylvania School Boards Association. Joan Benso, CEO of Pennsylvania Partnerships for Children, said the preschool cuts are unfortunate but could have been worse. “You don’t get to be 4 years old again when the state budget recovers,” she said.

PUBLIC TELEVISION

No funding, $2.5 million less

Two years ago, stations received $8 million in grants. In the budget agreement, those grants are eliminated. “We are deeply disappointed but not surprised,” said WITF President and CEO Kathleen Pavelko. Viewers will not notice any programming changes, she said. The station cut staffing, salaries and expenses in anticipation it would receive little or no funding from the state. The station’s recent donation campaign exceeded expectations, raising $2.9 million, she said. “We believe we will be able to maintain our current service levels into 2011,” Pavelko said.

STATE POLICE

$175.6 million, cut of $7.1 million

The Pennsylvania State Troopers Association, the union representing state police officers, has in the past expressed disappointment with the level of state aid under the Rendell administration, and this spending plan may only exacerbate those frustrations. The association has lobbied for more aid to bring in recruits, as hundreds of troopers are nearing retirement age. The state police employs more than 4,600 troopers. Pennsylvania State Police spokeswoman Lt. Myra Taylor said the department has been following the budget debate, but she could not comment on how any cuts would affect operations.

TRANSPORTATION

$344 million, including federal aid, down $8.8 million

The state Department of Transportation loses most of its aid from the state’s general fund. Only $2.2 million comes from the general fund. PennDOT receives federal aid and revenue from other sources. State funding for rail freight assistance is eliminated altogether. The rail funding was used to help keep truck traffic off roads and help transport supplies to the growing Marcellus Shale region, said Joe Gerdes, executive director of the Keystone State Railroad Association. He said the cut was part of a compromise that will allow rail projects to compete for money under the state’s capital program next year, which makes the cut easier to swallow. Given this year’s budget constraints, “We’re not crying too, too much,” Gerdes said.

VETERANS

$462 million, cut of $5.8 million

The Department of Military and Veterans Affairs gets $462 million, a decrease of $5.8 million. Kit Watson, the adjutant for the Pennsylvania American Legion, was disappointed by a cut in funding for services that help disabled Pennsylvania veterans obtain federal health-related benefits. More than 1 million veterans live in the Keystone State. The services will receive $1.7 million, a decrease of $14,000. “It’s already low to start with, and that’s the problem,” Watson said.

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